HANOI, Vietnam — On Saturday, Vietnam’s National Assembly granted approval for the development of a high-speed railway that will link the northern capital of Hanoi with Ho Chi Minh City in the south. The planned project comes with an estimated price tag of around $67 billion.

This ambitious railway will cover a distance of 1,541 kilometers (957 miles), connecting these two major cities. The new trains are projected to reach speeds of up to 350 kilometers per hour (217 miles per hour), potentially shortening travel time from the current lengthy 30 hours down to just five hours.

Construction of the railway is slated to commence in 2027, with hopes of the first trains being operational by the year 2035. However, Vietnam has a history of delays in its previous infrastructure endeavors, raising concerns about the timeline.

The railway will traverse through 20 different provinces and cities, featuring 23 passenger stations along with five dedicated freight stations. This infrastructure project aims to handle both passenger and cargo transport, and it is also expected to have strategic uses for national defense, as reported by state media.

Deputy Minister of Transport Nguyen Danh Huy stated that this initiative is in response to the increasing demand for transport solutions within the country. Several research studies have emphasized the necessity of faster transit options along the north-south corridor, according to state reports.

“This project is essential for adjusting the transportation balance and is a key element for Vietnam’s advancement into a new phase of economic growth,” Huy remarked.

Reports indicate that Vietnam plans to prioritize domestic funding to finance this railway project, although it may also explore foreign loans if they are deemed affordable and free from excessive restrictions.